At 3.2% CAGR, the South America Air Cargo Market is projected to be worth US$ 7.41 billion by 2028, says The Business Market Insights

According to the Business Market Insights’ research, the South America air cargo market was valued at US$ 6.13 billion in 2022 and is expected to reach US$ 7.41 billion by 2028, registering a CAGR of 3.2% from 2022 to 2028. Expanding airport infrastructure and new policies and intelligent cold chain solutions are the critical factors attributed to the South America air cargo market expansion.  

Logistic is a complex process which involves the flow of multiple goods and information across the network of suppliers, carriers, and warehouse. This complexity can be handled using software systems which allow analyzing real-time and real-world data. This implementation of software systems improves the supply chain and offers real-time visibility. Increased competitiveness in the industry is the major reason for Air Cargo Market players investing in automation and digitization. Moreover, the adoption of the RFID enabled devices is expected to store data for easy transport, which will also simplify tracking & identification of products. Software related to transportation management system will reduce the inefficiency and costs with saving time for operations. Few of the trends expected to boost the air cargo market during the forecast period are blockchain for pharma logistics, artificial intelligence, and predictive analysis implementation in logistics operations, among others.  

On the contrary, market uncertainty hurdles the growth of South America air cargo market.   

Based on type, the South America air cargo market is segmented into air mail and air freight. The air freight segment held 83.5% share of South America air cargo market in 2022, amassing US$ 5.12 billion. It is projected to garner US$ 6.24 billion by 2028 to expand at 3.4% CAGR during 2022–2028.      

Based on service, the South America air cargo market is segmented into express and regular. The regular segment held 54.6% share of South America air cargo market in 2022, amassing US$ 3.35 billion. It is projected to garner US$ 3.93 billion by 2028 to expand at 2.7% CAGR during 2022–2028.      

Based on end user, the South America air cargo market is segmented into retail, pharmaceutical & healthcare, food & beverage, consumer electronics, automotive, and others. The others segment held 24.6% share of South America air cargo market in 2022, amassing US$ 1.51 billion. It is projected to garner US$ 1.63 billion by 2028 to expand at 1.3% CAGR during 2022–2028.         

Based on country, the South America air cargo market has been categorized into Brazil, Argentina, and the Rest of South America. Our regional analysis states that Brazil captured 57.0% share of South America air cargo market in 2022. It was assessed at US$ 3.50 billion in 2022 and is likely to hit US$ 4.34 billion by 2028, exhibiting a CAGR of 3.7% during the forecast period.              

Key players dominating the South America air cargo market are Cargolux; Cathay Pacific Airways Limited; DHL International GmbH (Deutsche Post DHL Group); Emirates SkyCargo; Etihad Cargo; FedEx Corporation; Lufthansa Cargo AG; and United Parcel Service of America, Inc. among others.    

• In 2021, Lufthansa Cargo is expanding its extremely efficient freighter fleet with the addition of another brand-new Boeing 777F aircraft. The plane is expected to arrive before the end of the year. Customers of Lufthansa Cargo will then have access to a total of fifteen full-freighters.     
• In 2022, DHL Express continues to strengthen its global aviation network with the purchase of eight additional Boeing 777 Freighters.

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